WallStSmart

BP PLC ADR (BP)vsCompanhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR (SBS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

BP PLC ADR generates 407% more annual revenue ($193.00B vs $38.09B). SBS leads profitability with a 22.2% profit margin vs 1.7%. BP appears more attractively valued with a PEG of 0.05. SBS earns a higher WallStSmart Score of 77/100 (B+).

BP

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 5.5Value: 7.3Quality: 5.0

SBS

Strong Buy

77

out of 100

Grade: B+

Growth: 9.3Profit: 8.5Value: 5.3Quality: 4.3
Piotroski: 2/9Altman Z: 1.81
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

BPUndervalued (+26.9%)

Margin of Safety

+26.9%

Fair Value

$52.72

Current Price

$46.41

$6.31 discount

UndervaluedFair: $52.72Overvalued
SBSFair Value (-3.2%)

Margin of Safety

-3.2%

Fair Value

$28.67

Current Price

$33.29

$4.62 premium

UndervaluedFair: $28.67Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BP3 strengths · Avg: 9.7/10
PEG RatioValuation
0.0510/10

Growing faster than its price suggests

EPS GrowthGrowth
474.5%10/10

Earnings expanding 474.5% YoY

Market CapQuality
$122.00B9/10

Large-cap with strong market position

SBS6 strengths · Avg: 9.7/10
PEG RatioValuation
0.4710/10

Growing faster than its price suggests

Operating MarginProfitability
34.6%10/10

Strong operational efficiency at 34.6%

Revenue GrowthGrowth
43.9%10/10

Revenue surging 43.9% year-over-year

EPS GrowthGrowth
87.2%10/10

Earnings expanding 87.2% YoY

Market CapQuality
$118.61B9/10

Large-cap with strong market position

Return on EquityProfitability
21.3%9/10

Every $100 of equity generates 21 in profit

Areas to Watch

BP4 concerns · Avg: 3.5/10
P/E RatioValuation
38.2x4/10

Premium valuation, high expectations priced in

Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Profit MarginProfitability
1.7%3/10

1.7% margin — thin

SBS4 concerns · Avg: 2.8/10
Altman Z-ScoreHealth
1.814/10

Grey zone — moderate risk

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

P/E RatioValuation
67.2x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-8.22B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : BP

The strongest argument for BP centers on PEG Ratio, EPS Growth, Market Cap. Revenue growth of 11.6% demonstrates continued momentum. PEG of 0.05 suggests the stock is reasonably priced for its growth.

Bull Case : SBS

The strongest argument for SBS centers on PEG Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 22.2% and operating margin at 34.6%. Revenue growth of 43.9% demonstrates continued momentum.

Bear Case : BP

The primary concerns for BP are P/E Ratio, Price/Book, Return on Equity. Thin 1.7% margins leave little buffer for downturns.

Bear Case : SBS

The primary concerns for SBS are Altman Z-Score, Piotroski F-Score, P/E Ratio. A P/E of 67.2x leaves little room for execution misses.

Key Dynamics to Monitor

BP profiles as a value stock while SBS is a growth play — different risk/reward profiles.

SBS carries more volatility with a beta of 0.20 — expect wider price swings.

SBS is growing revenue faster at 43.9% — sustainability is the question.

BP generates stronger free cash flow (-381M), providing more financial flexibility.

Bottom Line

SBS scores higher overall (77/100 vs 65/100), backed by strong 22.2% margins and 43.9% revenue growth. BP offers better value entry with a 26.9% margin of safety. Both earn "Strong Buy" and "Strong Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

BP PLC ADR

ENERGY · OIL & GAS INTEGRATED · USA

BP plc participates in the energy business globally. The company is headquartered in London, the United Kingdom.

Companhia de Saneamento Basico do Estado de Sao Paulo SABESP ADR

UTILITIES · UTILITIES - REGULATED WATER · USA

Companhia de Saneamento Basico do Estado de So Paulo - SABESP provides water and sewerage services to residential, commercial, industrial and government clients. The company is headquartered in So Paulo, Brazil.

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